Kenyan Firm Nuzo Introduces Blockchain-Based Ecommerce for Africa

Nuzo is pioneering Kenya’s e-commerce industry with its new Shop-to-Earn platform. Kenya-based firm Nuzo caters to micro, small, and medium-sized businesses. This will allow online merchants to gain Nuzo Coins via regular buying and selling activities. Later on, online merchants can trade these tokens for services or merchandise.

Forty thousand people are already a part of the new organization. It just began doing business in June, but it is quickly growing.

Africa Is the Youngest and Fastest-Digitizing Area

Africa has the fastest-growing internet user population. As a result, it is the world’s youngest and fastest-digitizing area. Africa has a population that is 60% younger than 25. Africa is becoming the world’s youngest continent as a result.

Additionally, the continent is home to some nations that have adopted cryptocurrency the most globally. South Africa, Kenya, and Nigeria are some of these nations. The number of people who own cryptocurrency is expected to be 4.8 million across these nations.

There are no indicators that the adoption of cryptocurrencies across Africa will slow down. The usage of cryptocurrencies rose astonishingly by 1,200 percent in 2021.

However, Africa remains much behind other regions in its embrace of electronic commerce. Online retail transactions account for less than 2% of total retail transactions in Africa, compared to 19% globally.

The Future of E-Commerce in Africa

According to Charles Nichols, local participation in the platform’s economic ownership and governance is necessary for eCommerce to succeed in Africa. Nichols founded Nuzo. The adoption of eCommerce is now possible thanks to Web3 technology and blockchain tokens. According to Nichols, community ownership will be the main force behind eCommerce growth in Africa.

Nichols said that the best way to unlock the true potential of digital trade in Africa is to include the community in the ownership and administration of digital platforms. He is also a founding member of the African company SunCulture. SunCulture has been successful in raising almost $50 million.

He continued by saying that by including the community in ownership, Nuzo has created a well-liked marketplace that is expanding quickly. He underlined that the Nuzo Community’s high level of participation allows them to provide unique marketing chances for brands.

Web3 companies like Nuzo use blockchain tokens to encourage community ownership. This contrasts with well-known brands like Twitter, Facebook, and Amazon.

This ties in seamlessly with well-known community finance concepts popular throughout Africa. SACCOs and Chamas are a few examples of these financing companies. These are unofficial cooperative groups that combine and distribute funds across nearby areas.

Advantages Of Nuzo to Users

Because internet transactions raise the value of Nuzo Coins, online buyers and sellers can experience a new financial gain. Users can transfer money to friends, family, and companies at 90% less expensive rates than mobile money services like Kenya’s M-Pesa.

Nuzo Coins function as money but develop value over time. In contrast, the majority of African currencies have experienced inflation and depreciation.

Godwin Otieno is a community member and Customer who is associated with Nuzo. Otieno asserts vehemently that businesses and customers are accepting more transactions online. Otieno stated that Safaricom and Airtel, two of Kenya’s top mobile network carriers, have built a robust internet infrastructure that bodes well for eCommerce businesses.

He noted that Nuzo, the newest player, is affecting the potential for eCommerce. According to Otieno, Nuzo is doing this by participating at the grassroots level and aiming to appeal to the average Kenyan using Nuzo Coin incentives.